Which of the Following Statements Regarding Stock Dividends and Stock

question 97

Multiple Choice

Which of the following statements regarding stock dividends and stock splits is true?

• A) A two-for-one stock split is equivalent to a 50% stock dividend.
• B) A three-for-one stock split is equivalent to a 66% stock dividend.
• C) A three-for-two stock split is equivalent to a 100% stock dividend.
• D) A 50% stock dividend is equivalent to a three-for-two stock split.

---

Definitions:

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good.

Income Elasticity

A measure of how much the demand for a product changes with a change in consumers' income.

Quantity Supplied

the amount of a good or service that producers are willing and able to sell at a given price.